Lower rates has motivated some homeowners to refinance, but they wonder if are able to do this.
Just few years ago, during the housing boom, lending standard was that anyone could borrow 100 percent of the home value. Moreover, there was no need to document any income, and no one cared about recent credit history.
Nowadays requirements are more strict, house values have fallen and federal government has taken control of Freddie Mac and Fannie Mae.
This facts has coused that refinancing has no sense because the total savings are lower than closing costs. If yo live in Southern California where properties was overvalued, you might not be able to refinance a home loan even if you made more than 20 percent down payment.